203) choose the correct answer:1.If the production function for a firm exhibits diminishing marginal product, the corresponding total cost curve for the firm will become flatter as the quantity of output expands.

204) choose the correct answer:1.When marginal costs are below average total costs, average total costs must be falling. 2.If a firm has fixed costs of production and if marginal cost increases, as the quantity produced increases, the correspo

205) choose the correct answer:1.The average total cost curve in the long run is flatter than the average total cost curve in the short run. 2

206) Nicole owns a small pottery factory. She can make 1,000 pieces of pottery per year and sell them for Rs.100 each. It costs Nicole Rs.20,000 for the raw materials to produce the 1,000 pieces of pottery. She has invested Rs.100,000 in her factory and equipme

207) If there are implicit costs of production,